S&P rating

Top marks for Vorarlberg’s financial policy

Vorarlberg is still in a good financial and economic position.

(Bild: Bergauer Rubina)

Standard & Poor's has given the state's financial policy a good report card, confirming the "AA+/A-1+" rating. The main reasons for this are the solid budget management and the low level of debt. 

The fact that Vorarlberg has maintained its good rating is not a matter of course given the current difficult economic situation, inflation and increasing pressure on the state budget. "AA+/A-1+" essentially means that Vorarlberg can meet its financial obligations without any major problems. Incidentally, the absolute top rating would have been AAA - there are currently only nine countries in the world that play in this top league: Germany, Denmark, the Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore and Australia

Good conditions for borrowing
The rating is not just a symbolic act, but has very concrete effects - for example, Vorarlberg's excellent credit rating means that it can borrow at more favorable conditions than lower-rated countries or regional authorities if necessary. Governor Markus Wallner (ÖVP) once again sees the state government's financial policy course confirmed: "We always try to conduct our budget policy with long-term vision and common sense. This has also helped us in past crises. It is therefore all the more important to continue along this responsible path in the future." 

We always try to conduct our budgetary policy with long-term vision and common sense. This has also helped us in past crises. This makes it all the more important to continue on this course.

Landeshauptmann Markus Wallner (ÖVP)

Bild: mathis.studio

Vorarlberg owes its strong rating to two parameters in particular: disciplined budget management and a low level of debt. For example, the state's liquidity position is "excellent". Ultimately, the additional funds from the new financial equalization scheme (FAG) also had a positive effect on the "report card" - the financial injection was preceded by tough and lengthy negotiations with the federal government. S&P cited the rapid return to a balanced budget after the pandemic as an example of prudent financial management.

Medium-term outlook is "stable"
The comparatively very robust economy, the positive development in tourism and the continued low unemployment rate were cited as further strengths of the state of Vorarlberg. Due to this solid foundation, the outlook for the future is also "stable" - the rating agency therefore assumes that the Ländle will continue to sail in safe waters in terms of financial policy. Opposition representatives are not so sure on this point, however. NEOS finance spokesman Garry Thür, for example, complained that Governor Markus Wallner was painting the sky bluer than it is. There is no reason for exaggerated jubilation: "In recent years, long-term financial debt has been taken on to plug short-term budget holes. There is no improvement in sight and there is no discernible path to recovery."